ExlService (NASDAQ:EXLS) and Limelight Networks (NASDAQ:LLNW) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Risk & Volatility
ExlService has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Limelight Networks has a beta of 2.47, meaning that its stock price is 147% more volatile than the S&P 500.
This table compares ExlService and Limelight Networks’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ExlService||$762.31 million||2.49||$48.88 million||$2.52||21.96|
|Limelight Networks||$184.36 million||2.10||-$7.63 million||($0.02)||-171.00|
ExlService has higher revenue and earnings than Limelight Networks. Limelight Networks is trading at a lower price-to-earnings ratio than ExlService, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for ExlService and Limelight Networks, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ExlService currently has a consensus target price of $64.00, indicating a potential upside of 15.63%. Limelight Networks has a consensus target price of $6.30, indicating a potential upside of 84.21%. Given Limelight Networks’ stronger consensus rating and higher probable upside, analysts clearly believe Limelight Networks is more favorable than ExlService.
Insider and Institutional Ownership
92.2% of ExlService shares are owned by institutional investors. Comparatively, 75.9% of Limelight Networks shares are owned by institutional investors. 4.4% of ExlService shares are owned by company insiders. Comparatively, 10.6% of Limelight Networks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares ExlService and Limelight Networks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
ExlService beats Limelight Networks on 8 of the 13 factors compared between the two stocks.
ExlService Company Profile
ExlService Holdings, Inc. provides operations management and analytics services in the United States, the United Kingdom, and internationally. The company offers business process management (BPM) services to the insurance industry in the areas of claims processing, subrogation, premium and benefit administration, agency management, account reconciliation, policy research, underwriting support, new business processing, policy servicing, premium audit, surveys, billing and collection, commercial and residential survey, and customer services. It also provides BPM services related to the care management and population health, multi-chronic case management, dual eligible special needs plans, payment integrity, revenue optimization, and customer engagement for the healthcare industry; BPM services related to business processes in corporate and leisure travel, such as reservations, customer service, fulfillment, and finance and accounting; and finance and accounting BPM services, including procure-to-pay, order-to-cash, hire-to-retire, record-to-report, regulatory reporting, financial planning and analysis, audit and assurance, and treasury and tax processes. In addition, the company offers BPM services for banking and financial services industry comprising residential mortgage lending, retail banking and credit cards, commercial banking, and investment management; BPM services related to enhancing operating models, improving customer experience, reducing costs, shortening turnaround time, and simplifying compliance for clients; and industry-specific digital transformational services. Further, it provides predictive and prescriptive analytics in the areas of customer acquisition and lifecycle management, risk underwriting and pricing, operational effectiveness, credit and operational risk monitoring and governance, regulatory reporting, and data management. The company was founded in 1999 and is headquartered in New York, New York.
Limelight Networks Company Profile
Limelight Networks, Inc. provides content delivery and related services and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers services and solutions for businesses to deliver their digital content across Internet, mobile, and social channels. It provides Orchestrate Platform, a suite of integrated services comprising content delivery, video content management, Website and Web application acceleration, Website and content security, and cloud storage services. The company also offers professional services and other infrastructure services, such as transit and rack space services. It serves media companies operating in the television, music, radio, newspaper, magazine, movie, game, software, and social media industries, as well as enterprises, technology companies, and government entities conducting business online. Limelight Networks, Inc. was founded in 2001 and is headquartered in Tempe, Arizona.
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